What is the volatility? of a portfolio

Assignment Help Finance Basics
Reference no: EM132584725

Consider an economy with two types of? firms, S and I. S firms all move together. I firms move independently. For both types of firms there is a 30% probability that the firm will have a 21% return and a 70% probability that the firm will have a -8% return. What is the volatility? (standard deviation) of a portfolio that consists of an equal investment? in:

a. 35 firms of type? S?

b. 35 firms of type? I?

Reference no: EM132584725

Questions Cloud

Showing higher long-term interest rates : Why is a yield curve showing higher long-term interest rates than short-term rates (rising curve) called a normal curve?
Explain the concept of social engineering attack : Explain the concept of a social engineering attack and the methods you would employ to reduce your organization's exposure to it.
Business communication objectives : The main goal of any business communication is to determine what message needs to be delivered, and how to deliver it clearly and concisely to intended audience
Individual risk of the securities : Can the risk of a portfolio be greater than the individual risk of each of the securities it contains? Under what circumstances?
What is the volatility? of a portfolio : Consider an economy with two types of? firms, S and I. S firms all move together. I firms move independently. For both types of firms
Create a roster for the educators : Explain how you implement the model in the Excel spreadsheet and Discuss the optimal solution based on the results that you find
Migrating infrastructure and data from private data : Discussing obstacles, difficulties and other criteria that should be considered when migrating infrastructure and data from private data center to public cloud
Capstone and Practicum Reflective Journal Assignment : Assignment - Benchmark - Professional - Capstone and Practicum Reflective Journal - reflect on the personal knowledge and skills gained throughout this course
Measures required to preserve initial evidence integrity : Description of measures required to preserve initial evidence integrity. Description of measures required to preserve ongoing evidence integrity

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd